The Manufactured Home: More Than Meets the Eye

Posted inHomeowners, Realtors

Want to know the pros and cons of a manufactured home?

This post is all about factory-built housing and what every realtor and home buyer should know about a manufactured home.

manufactured home

Most people do not know the difference between a manufactured home vs a mobile home vs a modular home. I used to be one of those people!

These are all a version of a factory-built home.

And factory-built homes have come a long way – once seen as a lower-quality option, they’re now gaining popularity for their efficiency, affordability, and customization options.

I’m going to break down the differences so that you will be a pro when it comes to understanding the different types of factory-built homes.

Plus, you will learn the pros and cons of buying a manufactured home.

This post is all about factory-built housing and what every realtor and home buyer should know about a manufactured home.

Here’s the Scoop

There was a time when we would receive calls asking us to appraise manufactured homes.

And I always said “No, thank you” because it’s something we had never done.

But, then I noticed that I was saying “No thank you” an awful lot….

And, I couldn’t find another appraiser in our area who would take on the assignment.

Since, our goals are to help our neighbors find solutions…. Bev and I decided it was time to fill this gap.

We took the necessary steps in educating ourselves and very quickly realized that appraising a manufactured home wasn’t a big leap for us.

Here’s why – we specialize in valuing unique real estate properties.

Manufactured homes are just one more unique appraisal specialty in our market.

Why would you care about this?

Because, as housing prices continue to rise, home buyers are looking for more affordable ways to become homeowners.

And, manufactured homes are popping up more and more.

These are not your great-grandma’s mobile homes.

There are communities in our market where most people would not even realize are made up of manufactured homes.

So if you know someone who has a question regarding the value of these factory-built homes, we are here to help provide some answers.

Factory-Built Houses vs Stick Built

Here are the main differences between a factory built house and a house built totally on site (stick built).

Factory-Built houses:

  • Cost half as much to build
  • Can be finished within a month
  • Are engineered for geographic region
  • Have higher quality workmanship (as compared to an average stick built house provided by large volume builders)

Next, I will break down 5 different types of factory-built homes and provide extra details about the manufactured homes.

1. Mobile Homes

Mobile homes were constructed before June 15, 1976.

Then, HUD took over and created standards of construction.

Permanently mounted taillights is a strong indication of a mobile home.

Mortgage companies will not lend on these homes.

2. Manufactured Homes

Often mistakenly referred to as mobile homes, manufactured homes are built on a permanent chassis and adhere to specific HUD standards.

Construction of manufactured homes began after June 15, 1976.

They’re known for affordability and are often found in mobile home parks.

While they can be moved, they’re typically designed for long-term living.

HOW TO SPOT A MANUFACTURED HOME:

  • It will have a Hud Certification Label aka Hud Tag. This is a red metal plate affixed to the exterior of each section that will fade to silver with age. A single wide has 1 tag, a double wide (multi-section) has 2 tags, and so on.
  • It will also have a Hud Data Plate aka Compliance Cert. This is a paper document affixed somewhere to the interior, usually inside a kitchen cabinet, electric panel, or near the furnace.

Manufactured homes are often considered to be personal property (similar to a car) making it challenging to find a bank that will provide a mortgage.

But, there are loan programs available for manufactured homes if they meet certain requirements.

Manufactured Homes: Weighing the Pros and Cons

Manufactured home have undergone significant improvements in recent years.

Let’s explore the benefits and drawbacks to help you decide if this housing option is right for you.

Benefits of Manufactured Homes

  • Affordability: This is perhaps the most significant advantage. Manufactured homes are generally more budget-friendly than traditional site-built homes due to efficient production methods and lower material costs.
  • Speed of Construction: The factory-built process means your home can be constructed quickly and transported to the site ready for installation.
  • Customization: While not as extensive as modular homes, many manufacturers offer customization options for floor plans, finishes, and exterior styles.
  • Energy Efficiency: Modern manufactured homes often incorporate energy-saving features, leading to lower utility bills.
  • Mobility (in some cases): Although primarily designed for permanent living, some manufactured homes can be relocated, offering flexibility.

Drawbacks of Manufactured Homes

  • Depreciation: Manufactured homes tend to depreciate faster than site-built homes. However, this is changing as newer models offer higher quality and longer lifespans.
  • Financing Challenges: Obtaining a mortgage for a manufactured home can be more difficult than for a traditional home.
  • Stigma: Despite improvements, some people still hold negative perceptions about manufactured homes, which can affect resale value.
  • Location Restrictions: Zoning laws and homeowner association regulations may limit where you can place a manufactured home.
  • Property Taxes: How manufactured homes are taxed varies by location, and you may face higher property taxes compared to site-built homes in some areas.

It’s essential to consider the specific market conditions and regulations in your area when evaluating manufactured homes.

Be sure to research local builders, explore financing options, and visit manufactured home communities to get a firsthand look at the lifestyle.

Manufactured Home Sales Companies in Pennsylvania and New Jersey

Below are a few companies I found in PA and NJ that sell manufactured homes.

I am not recommending any one over another but, instead offering you a place to start looking around to gain the knowledge you need to make a decision.

You’ll want to stay as local as possible to keep the transportation fees as low as possible.

Pennsylvania

New Jersey

  • Modular Homes Affordably Priced: While primarily focused on modular homes, they also offer manufactured homes.

Note: This list is not exhaustive, and there may be other manufactured home sales companies in Pennsylvania and New Jersey. It’s recommended to conduct further research and visit local dealerships to explore your options.

3. Modular Homes

Modular homes are built in sections, or modules, in a factory and then transported to the building site where they’re assembled.

This method offers more flexibility in design and layout compared to manufactured homes.

Modular homes must meet the same state and local building codes as site-built homes.

There is no HUD plate or tag, but some modular homes may have a steel chasis.

Most are built with same materials as a stick built (site built) home and can be indistinguishable from them once assembled.

There are many mortgage options available for modular homes.

HOW TO SPOT A MODULAR HOME:

  • The Marriage Wall – where the sections are joined together. This will be twice as thick as the other interior walls.
  • The basement ceiling center girder. This will be composed of 6 or 8 parallel beams vs 3 or 4. There may be bolts joining these beams. And the floor joists will be flush with the center girder instead of sitting on top of it.

4. Panelized Homes

These homes are constructed from prefabricated wall panels and roof trusses that are assembled on-site.

Panelized homes must meet the same state and local building codes as site-built homes.

They offer a balance between customization and efficiency, as much of the construction happens in a controlled factory environment.

There are many mortgage options available for panelized homes.

5. Pre-Cut Homes and Kit Homes

Similar to panelized homes, pre-cut homes have their components cut and shaped in a factory.

However, they require more on-site assembly and can be more labor-intensive.

Pre-Cut homes must meet the same state and local building codes as site-built homes.

Most large volume builders use pre-cut lumber and 90% of log homes are kit homes.

There are many mortgage options available for pre-cut and kit homes.

Key Considerations of Factory-Built Homes

  • Cost: Manufactured homes generally offer the most affordable option, followed by modular and panelized homes. Pre-cut homes tend to be more expensive due to the labor involved.
  • Customization: Modular and panelized homes offer the most customization options, allowing you to design a home that suits your specific needs and style.
  • Quality: Factory-built homes can be built to high standards. Look for builders with a strong reputation and experience.
  • Local Regulations: Be aware of local zoning laws and building codes. Some areas may have restrictions on factory-built homes.

While factory-built homes may have once carried a stigma, they’ve evolved into a viable and attractive housing option. I hope this was helpful for you!

This post is all about factory-built housing and what every realtor and home buyer should know about a manufactured home.
Last updated on July 31, 2024